McCormick & Company, Incorporated (MKC) DCF Valuation
Transparent DCF models put McCormick & Company, Incorporated (MKC)'s fair value in a range of $27.42 – $68.50 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $48.63 sits within that range — roughly fairly valued on these assumptions.
Reverse DCF: at today's $48.63, the market is pricing in roughly +10.6%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +3.1%. The price is betting on acceleration above its track record.
Current Price
$48.63
Fair-Value Range
$27.42 – $68.50
Market-Implied Growth
+10.6%/yr
vs +3.1% 5Y actual
MKC DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $687.6M · 0.27B shares · net debt $3.9B
Estimated Fair Value
$27.42
-43.6% vs $48.63
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $48.63; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $37.60 | $40.27 | $43.43 | $47.22 | $51.85 |
| 9.0% | $30.25 | $32.08 | $34.18 | $36.64 | $39.55 |
| 10.0% | $24.65 | $25.95 | $27.42 | $29.10 | $31.05 |
| 11.0% | $20.25 | $21.20 | $22.27 | $23.46 | $24.82 |
| 12.0% | $16.70 | $17.42 | $18.21 | $19.09 | $20.07 |
About McCormick & Company, Incorporated
McCormick & Company, Incorporated is a global leader in the manufacture, marketing, and distribution of a wide array of flavorful products, including spices, seasoning mixes, and condiments, to the food industry. Its operations are divided into two primary segments: Consumer and Flavor Solutions. The Consumer segment provides an extensive range of items such as spices, herbs, seasonings, sauces, and desserts. These are sold under numerous prominent brands across various regions: McCormick, French's, Frank's RedHot, Lawry's Cholula Hot Sauce, Gourmet Garden, Club House, and OLD BAY in the Americas; Ducros, Schwartz, Kamis, Drogheria & Alimentari, and Vahiné throughout Europe, the Middle East, and Africa (EMEA); McCormick and DaQiao in China; and McCormick, Aeroplane, and Gourmet Garden in Australia. In addition, it offers specialized regional and ethnic brands like Zatarain's, Stubb's, Thai Kitchen, and Simply Asia, and also produces goods for private labels. Its customer base encompasses a broad spectrum of retailers, including grocery stores, mass merchandisers, warehouse clubs, discount and drug stores, and e-commerce platforms. Distribution to these outlets occurs both directly and indirectly via distributors and wholesale foodservice providers. The Flavor Solutions segment caters to large-scale food manufacturers and the wider foodservice industry. It supplies essential ingredients such as seasoning blends, spices, herbs, condiments, coating systems, and complex flavor formulations. These products are delivered directly to clients or through a network of distributors. Founded in 1889, the company maintains its headquarters in Hunt Valley, Maryland.
- Sector
- Consumer Defensive
- Industry
- Packaged Foods
- CEO
- Brendan Foley